Udaan restructures $178 million debt, avoids bankruptcy with BlackRock support
Udaan, the B2B e-commerce startup, just pulled off a major save by restructuring $178 million in debt and avoiding bankruptcy.
The deal, backed by BlackRock, includes quick cash payments, new bonds, a debt-for-equity swap, and an extra $45 million in funding.
This all happened after their parent company defaulted on big convertible bonds last month.
Udaan stays afloat for another year
Creditors get $35 million in cash plus $65 million in new convertible bonds that mature in 2028 with up to 15% interest.
Lightspeed Ventures, Udaan's biggest shareholder, converted a $40 million loan into equity and pitched in more funds to keep things running.
Thanks to this lifeline, Udaan stays afloat for another year and keeps its IPO dreams alive.
The company recently hit profitability in Bengaluru and saw private-label sales jump up to 25%.